Mining equipment leaders Bucyrus International and Joy Global headquarter in Milwaukee area

Both have international reach, both are local, both compete in a market that shows potential for incredible global growth, and together, according to Reuters, they control approximately 80 percent of the of the mining equipment industry. Yes, they both can also trace their early roots to the Milwaukee area.

Mining Leaders in Milwaukee, Part Two of Two: Bucyrus International

Bucyrus (Nasdaq: BUCY), shortly after its founding, set up shop in South Milwaukee in 1893, taking advantage of the area's productive workforce and growing prowess as a manufacturing hub. Eleven years later, the company seized the opportunity to show its global influence by producing 77 of the 102 steam shovels used in carving out the Panama Canal, according to Bucyrus.com. The project was one of the greatest undertakings on the world stage of its era.

Fortune magazine picks Bucyrus as the 9th fastest growing company in the U.S. for 2010. Last year, it was pegged at 27 by Fortune. As mentioned in Part I, Joy Global has a large focus on domestic sales. Bucyrus International, on the other hand, completes more than 70 percent of its sales for projects outside the country. In addition, in February, the company expanded its Asian presence and product line with the purchase of Terex Mining.

This “acquisition has transformed Bucyrus into a veritable one-stop shop for the major mining equipment needs of a modern mining camp,” according to fool.com, which gives advice and conducts research for the long-term investor. It is expected to double the size of the potential market in which its product line competes, according to Bob Tita, of Dow Jones Newswires. Also, Terex expanded Bucyrus' reach into the Chinese market. As reported by Milwaukee’s Newswatch on Jsonline in October, the purchase price offset 3rd quarter earnings by 15.7 percent, but sales grew over 38 percent with the acquisition in short order. Analysts referred to by Tita expect the addition to increase annual revenue by 46 percent to $3.8 billion, equaling or even exceeding Joy Global's sales, which were $3.59 billion in 2009.

Also reported via Jsonline’s RickBarrett in October was a final approval of $917 million in loan guarantees for a deal with India's Reliance Power by the U.S. Export-Import Bank. The newspaper said it would “save hundreds” of jobs in the area and, although Bucyrus stated it slightly differently, the company did say it was helpful in “keeping this work in the U.S.,” and that it involved “300 family-supporting jobs in the Milwaukee Region.”

Apparently, the Reliance Power deal deepens Bucyrus' focus on India. The family that has an interest in Reliance includes brothers, one of whom is the Chairman of Reliance, and the other who helped run the company in the past and, according to Forbes magazine, is the richest man in India and fourth richest in the world. Of course, the majority of equipment ordered will be used to mine coal, which power companies in India use to generate electricity and run steel and cement plants.

Recent press, then, seems to highlight Bucyrus' focus on India's potential market in the international realm. In fact, bucyrus.com highlighted the opening of their new India headquarters back in September of 2007, complete with video of the ribbon cutting ceremony. According to Bloomberg, coal demand in the country may triple in the next 20 years, based on a recent announcement in India by Coal Minister Sriprakash Jaiswal.

According to Jaiswal, the country currently produces 530 metric tons of coal per year, imports 67 million, and has reserves of about 277 billion. Still, he predicts that by 2030, India's people may use 2 billion tons annually. Currently, coal creates 53 percent of the country's power, and the need for mining its own reserves is great. In addition, according to Jasiwal, the government plans to purchase mines in other nations like Indonesia, Australia, South Africa and America to supplement India's domestic reserves. Finally, there are fewer restrictions on using mining equipment produced elsewhere when compared to its trading partner and Asian counterpart, China--at least for now.

Perhaps more people around the globe think of Milwaukee when they think of mining than most Wisconsin residents. It is truly an interesting time to do so when looking at dominating giants in the mining equipment market like Bucyrus, in the top ten for fastest growing companies in the nation, and Joy Global, the Fortune 1000 powerhouse. One focuses slightly more on domestic markets, the other on international projects. Breaking it down further, one seems to have chosen China as their favorite dark horse in the international market, and the other, India. Truly, an interesting case study on cross-town rivals.